What happens if someone attending your non-profit’s fundraiser falls and suffers serious injuries? Or if your organization is sued for a hiring or employment termination decision?
Like for-profit businesses, non-profit organizations face risks and potential liabilities, and insurance is an essential part of risk mitigation for all incorporated non-profits. (If the non-profit is not incorporated, any potential liability falls on the individual(s) who formed and/or run the enterprise.)
There are some risks — and, therefore, insurance coverages and programs — unique to non-profits. No single policy will cover every risk a non-profit could face. It’s important to work with an agent or agency with non-profit insurance experience so that a complete risk assessment can be completed. Then, an independent agent will be able to consider a variety of carriers and options and recommend a package of appropriate policies (at the best possible price) to best safeguard the organization, its employees and directors.
Most non-profits should consider a Non-Profit Directors & Officers Liability Insurance. D&O coverage goes beyond a general liability policy to specifically protect the personal assets of a non-profit’s board members in the event of a lawsuit. Many non-profits and their board members do not realize that they can be held personally liable for the acts of the organization. Non-Profit D&O Liability Insurance covers the cost of defense and settlements of judgements if wrongful act suits are filed against the organization.
There are many coverages geared to insure specific types of non-profit organizations, from supplemental policies that cover abuse to camps and fundraising events. There is no one-size-fits-all policy or coverage program. The first step is to understand the organization’s risks and then develop a package.
If you have concerns about a non-profit you direct, work for, or serve as a board member, contact your local agent today.